New Zealand is officially off track to meet its legislated child poverty targets, with 169,300 children living in material hardship and more than 350,000 in financially insecure households, according to data released by the Child Poverty Action Group (CPAG).
The figures, highlighted in the Budget 2026 Child Poverty Report and StatsNZ data for the year ended June 2025, show that 47,500 more children have fallen into material hardship over the past three years. In response, CPAG launched its Manifesto to Reduce Child Poverty, challenging political parties ahead of the election to commit to targeted policy solutions across incomes, housing, health, disability, and education.
The Gap Between Legislative Targets and Current Statistics
The Child Poverty Reduction Act 2018 established a framework aimed at halving child poverty by 2028, setting a goal to reduce material hardship down to 6%. According to CPAG executive officer Lyn Amos, the rate currently stands at 14.3%, meaning one in every seven children experiences material hardship.
The burden is not shared equally across demographics. Amos noted that the rate climbs to one in four for tamariki Māori, one in three for Pacific children, and one in four for disabled children. “Child poverty is a political choice, not an inevitability,” Amos said, pointing to failures across the labour market, housing, health, welfare, and tax settings.
Professor Emeritus Innes Asher of the University of Auckland, lead author of the manifesto written by 11 researchers and advocates, pointed to historical precedent to argue that reductions are achievable. Between 2019 and 2022, targeted policy changes successfully drove down child poverty rates. “We know what can work,” Asher said. “What’s missing is sustained political will.”
Five Priority Areas for Policy Reform
The CPAG manifesto details specific interventions designed to reverse the upward trend in hardship:
- Incomes: Lift the minimum wage to the Living Wage, index benefits to wages, replace “Working for Families” with a universal Child Tax Credit for low- and middle-income families, and dismantle poverty traps where families lose up to 96 cents of every extra dollar earned.
- Housing: Build 3,500 to 4,000 social homes annually, maintain income-related rents at 25%, end no-fault evictions, and restore accommodation supplement asset thresholds.
- Health: Provide free GP and after-hours care for all children up to age 18, free GP care during pregnancy, and expanded mental health support in schools.
- Disability: Raise the Child Disability Allowance to $98 a week while removing the partner income test and abatements from the Supported Living Payment.
- Education: Introduce fees-free community-based early childhood education and implement Equity Index funding at 10% of total school funding, as recommended by the Tomorrow’s Schools Taskforce.
Did you know? Child poverty is estimated to cost New Zealand between 3% and 4% of its GDP annually, amounting to $14 billion to $17.7 billion in downstream costs for hospitals, emergency housing, mental health services, and the justice system.
The Economic Argument for Early Intervention
Advocates emphasize that failing to address child poverty does not generate fiscal savings. Asher argued that fiscal restraint merely shifts expenses onto crisis services rather than preventing hardship.
“The real question is whether we pay early, through prevention of poverty, or pay far more later, through crisis intervention,” Asher said. CPAG maintains that cross-party collaboration is essential to move past short-term political cycles and protect vulnerable children.
“Children can’t vote and can’t lobby,” Amos said. “Our kids deserve politicians who are mature enough to come together across the House and focus on what works — not ideology or political point-scoring.”
Frequently Asked Questions
What is the current child poverty rate in New Zealand?
According to StatsNZ data for the year ended June 2025, 14.3% of children—representing 169,300 individuals—live in material hardship.
What was the original goal of the Child Poverty Reduction Act 2018?
The legislation set a target to halve child poverty by 2028, bringing the material hardship rate down to 6%.
What are the core areas covered by the CPAG manifesto?
The manifesto focuses on five key areas: incomes, housing, health, disability, and education.
How much does child poverty cost the economy?
Estimates place the cost of child poverty at 3% to 4% of GDP annually, or approximately $14 billion to $17.7 billion.
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